In a decisive move, OPEC+ has reached an agreement during Thursday’s Joint Ministerial Monitoring Committee (JMMC) meeting to extend and deepen oil production cuts into the new year.
Delegates confirmed that the deal includes an additional reduction of 1 million barrels per day (bpd), going beyond the existing 1 million bpd cut initiated by Saudi Arabia since the summer.
The agreement is currently “in principle” and awaits a formal vote at the upcoming full OPEC+ meeting.
Specifics of the agreement among OPEC+ members reveal that Algeria committed to reducing January oil production by an extra 50,000 bpd, as disclosed by the country’s energy minister, according to Reuters.
Additionally, Saudi Arabia has pledged to cut output by 1 million bpd, while Russia has committed to a reduction of 500,000 bpd.
Earlier in the JMMC meeting, delegates hinted at the possibility of discussing deeper oil production cuts for Q1 2024, with total cuts potentially reaching close to 2 million bpd, contingent on the willingness of member countries to contribute.
This proposed figure encompassed the rollover of the existing 1.3 million bpd cuts from Saudi Arabia and Russia. However, the final decision on the 2024 production plan will be determined during the subsequent full online OPEC+ meeting.
